Bill Text: MI HB5017 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Economic development; other; assessments on certain rental transactions; establish. Creates new act. TIE BAR WITH: HB 5018'09
Spectrum: Strong Partisan Bill (Democrat 14-1)
Status: (Introduced - Dead) 2010-03-25 - Discharge Committee Defeated [HB5017 Detail]
Download: Michigan-2009-HB5017-Introduced.html
HOUSE BILL No. 5017
May 28, 2009, Introduced by Reps. Stanley, Hammel, Bennett, Gregory, Gonzales, Spade, McDowell, Terry Brown, Haveman, Sheltrown, Liss, Espinoza, Lahti, Slezak and Robert Jones and referred to the Committee on Tourism, Outdoor Recreation and Natural Resources.
A bill to impose a state assessment on persons engaged in the
business of leasing or renting a motor vehicle; to provide for the
levy, collection, and administration of the state assessment; to
provide for the disposition of the proceeds of the state
assessment; to prescribe the powers and duties of certain state
departments and certain public entities; and to provide for certain
exemptions.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"Michigan promotion assessment act".
Sec. 2. As used in this act:
(a) "Assessable transaction" means the lease or rental of a
motor vehicle designed for 8 or fewer passengers, regardless of
whether the vehicle is licensed in this state, for a period of less
than 31 days that commences at 1 of the following:
(i) A hotel, motel, or inn.
(ii) A commercial airport or at a location within 5.0 miles of
a commercial airport.
(iii) An other transportation facility.
(iv) A convention facility.
(b) "Commercial airport" means an airport within this state
that has regularly scheduled commercial flights.
(c) "Convention facility" means a facility designed for
holding conventions, meetings, exhibits, trade shows, and similar
events.
(d) "Michigan promotion fund" means the Michigan promotion
fund described in section 39 of the Michigan strategic fund act,
1984 PA 270, MCL 125.2039.
(e) "Motor vehicle" means a motor vehicle that is or would be
subject to registration and certificate of title under section 216
of the Michigan vehicle code, 1949 PA 300, MCL 257.216, that is
designed and intended to be used primarily in the transportation of
passengers. Motor vehicle does not include a road tractor, school
bus, special mobile equipment, tank vehicle, truck tractor,
implement of husbandry, or farm tractor as those terms are defined
by the Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923.
(f) "Other transportation facility" means a passenger train
station, motor bus terminal, or harbor.
(g) "Person" means an individual, partnership, corporation,
association, limited liability company, or other legal entity.
Sec. 3. Except as otherwise provided in this section or in
section 7 or 8, beginning with assessable transactions that begin
after September 30, 2009 and through September 30, 2014, there is
imposed on persons engaged in the rental or lease of motor vehicles
an assessment of $2.50 for each day or portion of a day of each
assessable transaction.
Sec. 4. (1) An assessment under this act shall be collected at
the same time and in the same manner as the tax imposed under the
use tax act, 1937 PA 94, MCL 205.91 to 205.111, and the general
sales tax act, 1933 PA 167, MCL 205.51 to 205.78.
(2) The assessment imposed by this act shall be administered
by the department of treasury under 1941 PA 122, MCL 205.1 to
205.31.
Sec. 5. (1) The assessment provided for under this act is a
tax that is levied on a person engaged in the business of rental or
lease of motor vehicles.
(2) A taxpayer may reimburse himself or herself by adding the
amount of the assessment to the rental transaction.
Sec. 6. The proceeds from the collection of the assessment
imposed under this act shall be deposited with the state treasurer
and credited to the Michigan promotion fund. However, if the
balance in the Michigan promotion fund at the end of any fiscal
year exceeds $40,000,000.00, adjusted annually for the rate of
inflation, beginning with the first fiscal year after that balance
reaches $40,000,000.00, additional collections from the assessment
under this act for the succeeding fiscal year shall be deposited in
the general fund.
Sec. 7. Beginning in the fiscal year immediately succeeding a
fiscal year in which the Michigan promotion fund has a year-end
balance that exceeds $40,000,000.00, adjusted annually for
inflation, the assessment imposed under section 3 shall be reduced
by 50 cents each fiscal year. Beginning in the fiscal year
immediately succeeding 2 consecutive fiscal years in which the
Michigan promotion fund has a year-end balance that exceeds
$40,000,000.00, adjusted annually for inflation, the department of
treasury shall cease imposing and collecting the assessment
described in section 3.
Sec. 8. This act does not apply to a motor vehicle provided at
no charge to a person whose motor vehicle is being repaired,
adjusted, or serviced by the entity providing the replacement motor
vehicle.
Sec. 9. This act does not apply to a motor vehicle provided to
a person whose motor vehicle is being repaired, adjusted, replaced,
or serviced, and who submits an insurance claim, accident report,
or written estimate from a motor vehicle repair facility dated
within 7 days of the lease or rental of a motor vehicle.
Enacting section 1. This act does not take effect unless all
of the following bills of the 95th Legislature are enacted into
law:
(a) Senate Bill No.____ or House Bill No.____ (request no.
03089'09).
(b) Senate Bill No.____ or House Bill No. 5018(request no.
03155'09 *).
(c) Senate Bill No.____ or House Bill No.____ (request no.
03196'09).
